Becoming a Habitat Homeowner

Becoming a Habitat Homeowner

Requirements for Homeownership Applicants

Habitat’s acceptance guidelines are based on consideration of the following criteria:

Need for Housing

The applicant(s) must demonstrate that their current housing situation has one or more of the following characteristics:

    • Unsafe or very poor conditions or located in a particularly unsafe area
    • Rent, or contribution currently paid towards rent, exceeds 35% of net income
    • Size is inadequate for the present or anticipated residents
    • Other facts demonstrating a need for the type of housing Habitat can provide that goes beyond a personal desire to own a home.

Applicants will not be approved if they:

    • Can qualify for conventional financing
    • Presently own real estate
    • Have owned real estate within the last three (3) years

Eligible applicants are not disqualified because they may qualify for another subsidy program, governmental or charitable, or tax deferral.

Demonstrated Ability to Pay

    • Gross household income must be between 30% and 60% of the median income for the McHenry County area at the time of application.
    • A two-year history of stable income and employment
    • An acceptable credit history, which includes a good record of paying rent and utilities
    • Bankruptcies must have been discharged for two years
    • A $1000.00 down payment on the house.
    • Ability to afford anticipated mortgage payments. Monthly payments for debt cannot exceed 40% of gross monthly income
    • Applicants must be U.S. citizens or permanent resident aliens and must have resided in McHenry County, Illinois for the past year.

2015 Income Guidelines (Source: HUD)

Family Size Minimum Gross Income Maximum Gross Income
1 $16,000 $31,920
2 $18,250 $36,480
3 $20,550 $41,040
4 $22,800 $45,600
5 $24,650 $49,260
6 $26,450 $52,920
7 $28,300 $56,580
8 $30,100 $60,240

Willingness to Partner with Habitat

    • Applicant must be willing to contribute at least 250 hours of sweat equity towards the building of Habitat homes, of which 100 construction hours must be completed by each primary applicant. Additionally, each resident of the home 18 years of age and older is expected to complete 100 hours of sweat equity; 16 and 17 year olds are expected to contribute 75 hours of sweat equity
    • Applicant must be willing to live in a neighborhood in which Habitat is currently building
    • Applicant must be willing to continue to partner with Habitat after their home is finished through on time mortgage payments, volunteerism, and home upkeep
    • Applicant must be willing to attend required workshops for success in homeownership

Habitat for Humanity of McHenry County is an equal opportunity housing provider. It considers every applicant without regard to race, religious preference, gender, handicap, familial status or national origin.

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